CALGARY, Alberta, March 06, 2025 (GLOBE NEWSWIRE) — Black Diamond Group Limited (“Black Diamond”, the “Company” or “we”), (TSX:BDI), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three months (the “Quarter”) and twelve months (“2024” or the “Year”) ended December 31, 2024 compared with the three months (the “Comparative Quarter”) and twelve months (“2023” or the “Prior Year”) ended December 31, 2023. All financial figures are expressed in Canadian dollars.
Key Highlights from the Quarter
- Profit for the Quarter of $9.3 million increased 19% from the Comparative Quarter.
- Consolidated rental revenue of $38.5 million increased 7% as compared to the Comparative Quarter.
- The Company’s consolidated contracted future rental revenue at the end of the Quarter was $159.4 million, up $23.0 million or 17% from the Comparative Quarter.
- Adjusted EBITDA1 of $37.2 million was up 43% from the Comparative Quarter.
- Return on Assets1 of 25.2% improved 710 basis points from the Comparative Quarter and continues to represent an attractive return profile given the long-life and low maintenance characteristics of the Company’s rental assets.
- Modular Space Solutions (“MSS”) rental revenue of $25.9 million was another record and increased 18% from $22.0 million in the Comparative Quarter. MSS value-added products and services (“VAPS”) revenue for the Quarter of $2.0 million was up 18% from the Comparative Quarter, driving VAPS as a % of Rental Revenue1 of 8.2%.
- Workforce Solutions (“WFS”) revenue of $59.9 million increased 16% from the Comparative Quarter.
- LodgeLink total room nights sold increased 23% from the Comparative Quarter, resulting in a fourth quarter record of 125,022.
- Funds from Operations1 of $44.1 million and Free Cashflow1 of $32.7 million for the Quarter were up 47% and 60%, respectively, from the Comparative Quarter.
- Subsequent to the end of the Quarter, the Company reached an agreement with its lenders to extend and amend its asset-based revolving credit facility (“ABL Facility”), increasing the maximum revolving line to $425 million while also providing advance rates against categories of rental assets that were previously excluded from the borrowing base. The maturity date was extended to February 20, 2030 and all other material terms remained the same.
- Subsequent to the end of the Quarter, the Company declared a first quarter dividend of $0.035 payable on or about April 15, 2025 to shareholders of record on March 31, 2025.
Key Highlights from 2024
- Consolidated revenue of $403.0 million and Adjusted EBITDA1 of $113.3 million for the Year were up 2% and 6% from the Prior Year, respectively.
- Consolidated rental revenue of $146.8 million was up 1% from the Prior Year despite the conclusion of several large projects that positively impacted Prior Year rental revenue performance.
- Total capital expenditures for the Year of $109.2 million was up 58% compared to the Prior Year. The vast majority of this capital was directed towards growth initiatives that drove ongoing rental revenue growth and contributed to record contracted future rental revenue of $159.4 million, up 17% from the Prior Year.
- MSS generated record rental revenue of $94.1 million, up 10% from the Prior Year.
- WFS total revenue was $179.0 million compared to the Prior Year total revenue of $186.8 million. WFS segment performance remained relatively consistent despite the conclusion of two large pipeline projects in the Prior Year.
- LodgeLink continued to scale and generated record net revenue of $11.4 million, up 16% from the Prior Year. Gross Bookings1 of $94.8 million was up 21% from the Prior Year while total room nights sold for the Year were up 23% from the Prior Year to a record of 517,382.
- Long-term debt and Net Debt1 were $235.7 million and $223.6 million, respectively, at the end of the Year. Net Debt to trailing twelve months (“TTM”) Adjusted Leverage EBITDA1 of 2.0x is at the low end of the Company’s target range of 2.0x to 3.0x while available liquidity (prior to the recent expansion of the ABL Facility) was $103.1 million at the end of the Year.
- Since re-instating the dividend in 2021, the Company has announced four dividend increases, with the most recent occurring in the Quarter. In the Year, Black Diamond returned $7.3 million to shareholders in the form of dividends and repurchased an aggregate of $6.2 million of shares, inclusive of in-trust share purchases and the Company’s normal course issuer bid.
Outlook
Management is pleased with the year-over-year growth and performance in 2024 relative to the strong performance in the Prior Year driven by two large pipeline contracts. The outlook into 2025 is similarly strong and the business remains well positioned, with over $159.4 million of contracted future rental revenue, up 17% year-over-year. Growing contracted future rental revenue was driven by stable rental performance from the Company’s existing rental fleet as well as from disciplined growth initiatives throughout the Year, with $109.2 million of gross capital expenditures as well as ongoing contract renewals at higher average rates.
The Company continues to see supportive macro tailwinds in multiple end-markets including education, larger general infrastructure projects and resource development in North America and Australia. Our focus remains on growing high margin, recurring rental revenue while reinvesting organically generated cash flows to further compound shareholder returns. Management expects that for 2025, on an annualized basis, the Company will continue to reinvest a similar proportion of its Free Cashflow1 as compared to 2024.
MSS generated record rental revenue of $25.9 million in the Quarter, up 18% from the Comparative Quarter, driven by higher rental rates and ongoing organic fleet investment. Utilization levels on average remain healthy across the platform. MSS contracted future rental revenue continues to grow and ended the Quarter at $128.7 million, up 26% or $26.9 million from the Comparative Quarter, with an average rental duration of 51 months. MSS sales revenue also increased 95% from the Comparative Quarter, and was up meaningfully from the first half of 2024 as previously delayed projects reached completion. Given the strong contracted backlog in place as a result of prudent capital investments throughout the Year, combined with continued momentum across the MSS platform, management believes the MSS segment is well positioned for continued compounding growth into 2025 and beyond.
For the Year, WFS performance was modestly below the Prior Year with revenue and Adjusted EBITDA1 down 4% and 2%, respectively, as the business continued to absorb the impact of major project completions. For the Quarter, WFS revenue and Adjusted EBITDA1 were up 16% and 12%, respectively, primarily due to an increase in sales revenue driven by the sale of used fleet and custom fleet assets to long term mining projects. WFS continues to deliver strong returns, generating a Return on Assets1 of 38% for the Year. Management remains focused on driving a recovery in rental revenue through increased utilization across our WFS geographies amidst a higher rate environment. The WFS sales pipeline and opportunity set also remain strong, backstopped by $30.7 million of contracted future rental revenue.
LodgeLink continued its positive growth in 2024, with record Gross Bookings1 and net revenue for the Year up 21% and 16% to $94.8 million and $11.4 million, respectively. Gross Bookings1 grew 11% from the Comparative Quarter to $21.7 million, while net revenue was down 4% from the Comparative Quarter to $2.5 million. The Company has accelerated its investment in product development which will support LodgeLink’s ongoing growth trajectory while further differentiating the platform’s value proposition in the workforce travel ecosystem.
The Company’s ongoing Enterprise Resource Planning (“ERP”) upgrade project for Black Diamond’s MSS and Corporate and Other segments remains on track and on budget with approximately $10.5 million remaining from the initial implementation budget of $11.9 million. Implementation began in Q4 2024 and is anticipated to be completed with go-live in the first half of 2026. The ERP upgrade is expected to further enhance operational efficiency and support the long-term growth objectives of Black Diamond.
1Adjusted EBITDA, Funds from Operations, Free Cashflow, Gross Bookings and Net Debt are non-GAAP financial measures. Return on Assets, VAPS as a % of Rental Revenue and Net Debt to TTM Adjusted Leverage EBITDA are non-GAAP ratios. Refer to the “Non-GAAP Financial Measures” section of this news release for more information on each non-GAAP financial measure and ratio.
Fourth Quarter 2024 Financial Highlights
| Three months ended December 31, |
Twelve months ended December 31, |
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| ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Financial Highlights | $ | $ | % | $ | $ | % |
| Total revenue | 132.7 | 103.4 | 28% | 403.0 | 393.5 | 2% |
| Gross profit | 55.3 | 43.6 | 27% | 183.8 | 174.4 | 5% |
| Administrative expenses | 19.4 | 19.1 | 2% | 74.4 | 69.3 | 7% |
| Adjusted EBITDA(1) | 37.2 | 26.1 | 43% | 113.3 | 106.6 | 6% |
| Adjusted EBIT(1) | 22.6 | 14.9 | 52% | 64.3 | 62.4 | 3% |
| Funds from Operations(1) | 44.1 | 30.1 | 47% | 124.6 | 116.8 | 7% |
| Per share ($) | 0.72 | 0.50 | 44% | 2.04 | 1.94 | 5% |
| Profit before income taxes | 16.2 | 8.6 | 88% | 38.8 | 40.6 | (4)% |
| Profit | 9.3 | 7.8 | 19% | 25.7 | 30.4 | (15)% |
| Earnings per share – Basic ($) | 0.16 | 0.13 | 23% | 0.42 | 0.50 | (16)% |
| Earnings per share – Diluted ($) | 0.15 | 0.13 | 15% | 0.41 | 0.49 | (16)% |
| Capital expenditures | 14.7 | 13.9 | 6% | 109.2 | 69.1 | 58% |
| Property and equipment | 576.4 | 506.5 | 14% | 576.4 | 506.5 | 14% |
| Total assets | 748.6 | 647.6 | 16% | 748.6 | 647.6 | 16% |
| Long-term debt | 235.7 | 190.4 | 24% | 235.7 | 190.4 | 24% |
| Cash and cash equivalents | 13.3 | 6.5 | 105% | 13.3 | 6.5 | 105% |
| Return on Assets (%)(1) | 25.2% | 18.1% | 710 bps | 20.1% | 19.6% | 50 bps |
| Free Cashflow(1) | 32.7 | 20.5 | 60% | 79.9 | 81.3 | (2)% |
| (1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the “Non-GAAP Financial Measures” section of this news release for more information on each non-GAAP financial measure and ratio. |
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Additional Information
A copy of the Company’s audited consolidated financial statements for the years ended December 31, 2024 and 2023 and related management’s discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is a specialty rentals and industrial services company with two operating business units – MSS and WFS. We operate in Canada, the United States, and Australia.
MSS through its principal brands, BOXX Modular, CLM, MPA Systems, and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors.
WFS owns a large rental fleet of modular accommodation assets of various types. Its regional operating terminals rent, sell, service, and provide ancillary products and services including turnkey operated camps to a wide array of customers in the resource, infrastructure, construction, disaster recovery, and education sectors.
In addition, WFS includes LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics in North America. The LodgeLink proprietary digital platform enables customers to efficiently find, book, and manage their crew travel and accommodation needs through a rapidly growing network of hotel, remote lodge, and travel partners. LodgeLink exists to solve the unique challenges associated with crew travel and applies technology to eliminate inefficiencies at every step of the crew travel process from booking, to management, to payments, to cost reporting.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Jason Zhang at 403-206-4739 or investor@blackdiamondgroup.com.
Conference Call
Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, March 7, 2025. CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond’s financial results for the Quarter and then take questions from investors and analysts.
To access the conference call by telephone dial toll free 1-844-763-8274. International callers should use 1-647-484-8814. Please connect approximately 10 minutes prior to the beginning of the call.
To access the call via webcast, please log into the webcast link 10 minutes before the start time at:
https://www.gowebcasting.com/13938
Following the conference call, a replay will be available on the Investor Centre section of the Company’s website at www.blackdiamondgroup.com, under Presentations & Events.
Reader Advisory
Forward-Looking Statements
Certain information set forth in this news release contains forward-looking statements including, but not limited to, the Company’s outlook for 2025, expectations for and opportunities in different geographic areas, opportunities for organic investment, reinvesting operating cashflows, the Company’s ability to fund organic and inorganic growth, management’s goals and business objectives, the sales and opportunity pipeline, timing and payment of the Company’s quarterly dividends, the anticipated timeline and budget for the Company’s ERP system upgrade and implementation project, utilization levels, contract renewals, management’s assessment of Black Diamond’s future operations and what may have an impact on them, expectations regarding the rental rate environment, financial performance, business prospects and opportunities, effects on demand and performance based on the changing operating environment, expectations for demand and growth in the Company’s operating and customer segments, future deployment of assets, amount of revenue anticipated to be derived from current contracts, anticipated debt levels, liquidity demands and sources, ongoing contractual terms and debt obligations, liquidity, economic life of the Company’s assets, expected length of existing contracts and future growth and profitability of the Company. With respect to the forward-looking statements in this news release, Black Diamond has made assumptions regarding, among other things: future commodity prices, the future interest rate environment, that Black Diamond will continue to raise sufficient capital to fund its business plans in a manner consistent with past operations, timing and cost estimates of a new ERP system, that counterparties to contracts will perform the contracts as written and that there will be no unforeseen material delays in contracted projects. Although Black Diamond believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurances that such expectations or assumptions will prove to be correct. Readers are cautioned that assumptions used in the preparation of such statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of Black Diamond. These risks include, but are not limited to: the volatility of industry conditions, dependence on agreements and contracts, competition, credit risk, information technology systems and cyber security, vulnerability to market changes, operating risks and insurance, weakness in industrial construction and infrastructure developments, weakness in natural resource industries, access to additional financing, dependence on suppliers and manufacturers, reliance on key personnel, workforce availability, market price of common shares, safety performance, expansion into new activities, government regulation, failure to realize anticipated benefits of acquisitions and dispositions, inflationary price pressure, environmental liability, environmental regulation of the Company’s customers, environmental disasters, Indigenous relationships, dilution, disease outbreaks, variations in foreign exchange rates and interest rates, foreign operations, dependence on operating permits, dependence on operating permits, maturity of credit facility, management of growth, seasonality in certain customer markets, litigation, potential replacement or reduced use of products and services, income taxes, conflicts of interest, restrictive covenants and leverage, and forward-looking information may prove inaccurate. The risks outlined above should not be construed as exhaustive. Additional information on these and other factors that could affect Black Diamond’s operations and financial results are included in Black Diamond’s annual information form for the year ended December 31, 2024 and other reports on file with the Canadian securities regulatory authorities which can be accessed on Black Diamond’s profile on SEDAR+. Readers are cautioned not to place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update or revise any of the forward-looking statements, except as may be required by applicable securities laws.
Non-GAAP Financial Measures
In this news release, the following specified financial measures and ratios have been disclosed: Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Funds from Operations, Free Cashflow, Gross Profit Margin, Return on Assets, VAPS as a % of Rental Revenue, Gross Bookings, Net Revenue Margin and Net Capital Expenditures. These non-GAAP financial measures do not have any standardized meaning prescribed under International Financial Reporting Standards (“IFRS”) and are therefore unlikely to be comparable to similar measures presented by other entities. Readers are cautioned that the non-GAAP financial measures are not alternatives to measures under IFRS and should not, on their own, be construed as an indicator of Black Diamond’s performance or cash flows, a measure of liquidity or as a measure of actual return on the shares of Black Diamond. These non-GAAP financial measures should …
